The Rate of Change / ROC Indicator is a simple, but powerful indicator. The concept behind the ROC indicator is to find the change, as a percentage, from the current price bar to a price bar X bars ago (where X is the look back and is defined by the user). The formula for the ROC is as follows (where Input is the price data, such as Close or Typical price, that is selectable by the user): ((Input – Input[X]) / Input[X]) * 100. When price has a positive change, the oscillator will be greater than 0 and below zero when price has a negative change.
The NinjaTrader indicator Rate of Change (ROC) is built on our Oscillator Framework, which allows users to easily run the indicator on multiple time frames (MTF), including custom bar types. To preview “The Framework” that makes our indicators a necessary part of every traders arsenal, please review the following video: